2. Safe Harbor
This material includes forward-looking statements that are subject to
certain risks, uncertainties and assumptions. Such forward-looking
statements include projected earnings, cash flows, capital
expenditures and other statements and are identified in this document
by the words “anticipate,” “estimate,” “expect,” “projected,”
“objective,” “outlook,” “possible,” “potential” and similar
expressions. Actual results may vary materially. Factors that could
cause actual results to differ materially include, but are not limited to:
general economic conditions, including the availability of credit,
actions of rating agencies and their impact on capital expenditures;
business conditions in the energy industry; competitive factors;
unusual weather; effects of geopolitical events, including war and acts
of terrorism; changes in federal or state legislation; regulation; actions
of accounting regulatory bodies; the higher degree of risk associated
with Xcel Energy’s nonregulated businesses compared with
Xcel Energy’s regulated business; and other risk factors listed from
time to time by Xcel Energy in reports filed with the SEC, including
Exhibit 99.01 to Xcel Energy’s report on Form 10-K for year 2006.
3. Northern States Power–Minnesota
2006 Financials
North Dakota Minnesota Earnings Cont. Op $272 million
Assets $9,079 million
GAAP ROE 11.2%
Equity Ratio 52.3%
2006 Owned Generation *
Coal 3,590 MW
Gas 2,335 MW
South Dakota Nuclear 1,817 MW
Renewable 399 MW
2006 Retail Sales
2006 Customers
(Thousands of MWh / MMBtu)
Electric 1,360,000 Electric 35,923
Gas 465,000 Gas 70,497
* 2006 Owned generation
includes NSPW MW
4. 2006 Rate Base and ROE
Dollars in millions
Weather
Normalized
Rate Base Earned ROE
Minnesota Electric $3,599 10.3%
Minnesota Gas 441 6.1
North Dakota Electric 188 8.9
North Dakota Gas 44 7.5
South Dakota Electric 232 11.1
Wholesale 27 Not Reported
Total Rate Base $4,531
Regulated Equity Ratio = 51.6%
5. 2007 Legislation Session
Demand-
Side
Renewable Management
Portfolio (annual MWh Carbon
State Standards savings) Reduction
30% by 2025
Minnesota 30% by 2020 * 1.5%
(over 2005)
North Dakota 10% by 2015 N/A N/A
* Timeline for 30% RPS
15% by 2010
18% by 2012
25% by 2016
30% by 2020
6. Renewables at Year End 2007
NSPM
& NSPW NSPM (85%)
MW
Wind 1,115 948
Biomass 297 253
Hydro * 277 235
* Does not include Manitoba Hydro
7. Wind and Biomass Resources
Wind
Density
High Thousand Tons/Year
Xcel Energy Above 500 150 – 250 50 – 100
States Served
Low 250 – 500 100 - 150 Less 50
8. Transmission Expansion
CapX 2020 Group 1
CapX Group 1 Proposed
Total Cost ~ 1.5 billion
Project Study Corridors
Xcel Energy ~ $800 million
Miles – 700
CON filed August 2007
Approval expected 2008
Construction 2012–2015
Bemidji-Grand Rapids (230-kV)
Fargo-St. Cloud-Monticello (345-kV)
SE Twin Cities-Rochester-La Crosse
(345-kV)
Brookings, SD-SE Twin Cities
(345-kV)
Note: Certificate of Need (CON)
The shaded areas are potential corridors or proposed lines
9. Transmission for
Renewable Requirements
Meeting 2025 RES *
MINNESOTA
Grand Forks Bemidji
NORTH
Total cost: $2 – 3 billion
Fargo Grand
DAKOTA
Rapids
Xcel Energy: $1.3 – 2 billion
WISCONSIN
SOUTH Miles: 700 – 1,000
Twin Cities
DAKOTA
Sioux Falls
Meeting 2016 RES *
IOWA
Sioux Fort Plano
Plan Complete 2008
City Dodge
State Review 2009
ILLINOIS
Scope:
CapX Group 1 $450 million
110 miles
Potential RES Vision
* Renewable Energy Standards
11. Conservation and DSM
MN Summer System Peak Day
Peak Day
MW
10,500
10,000
Expected
9,500
System Load
9,000
8,500
System Load
8,000
7,500
7,000
6,500
6,000
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour Ending
12. Redeploying Existing Assets
Xcel Energy North
Flambeau
Granite City
Monticello
Wheaton
Blue Lake
Prairie Island
Key City
Blackdog Red Wing
Wilmarth French Island
14. Requested Resource Plan Outcomes
Nuclear extension and uprate CON approvals
Sherco upgrade approval
Manitoba Hydro extension approval
Approval of peaking plan and renewable
energy ownership plan
Conservation plan at 1.1%
Implement 2007 legislation
15. 20+% Carbon Reduction by 2020
Energy by CO2 Reduction from
Resource Type 2005 Existing Levels Tons CO2
GWh
60,000 37,000,000
50,000
32,000,000
40,000
27,000,000
30,000
22,000,000
20,000 CO2 Levels
17,000,000
10,000
12,000,000
-0
2005 2020
2008 2020
CO2 w/o Reductions
Bio MH Hydro
CO2 with Reductions
Wind System Oil
MERP Wind DSM
Purchase
MH
Upgrades
Gas Nuclear Coal
16. Recovery on Capital Investment
Dollars in millions
1,600
$1,380
1,400
1,200
$1,060
$1,025
$955
$935
1,000
800
600
400
200
0
2007 2008 2009 2010 2011
Traditional Enhanced Recovery Depreciation
17. Minnesota Recovery Mechanisms
Forward test year with interim rates
MERP rider
Transmission rider
Conservation Improvement Program rider
Mercury Reduction & Environmental
Improvement rider
Renewable Development Fund rider
State Energy Policy rider
Fuel clause adjustment
Purchased gas adjustment
18. Dakota’s Cost Recovery Mechanisms
Forward test year with interim rates (ND)
Historic test year (SD)
Environmental rider (ND & SD)
Transmission rider (ND & SD)
Fuel clause adjustment (ND & SD)
Full decoupling on retail natural gas (ND)
